Reliance Global Group (RELI) Announces its Strategic Expansion into Cryptocurrency and Blockchain-Enabled Insurance-Linked Assets

Rhea-AI Summary

Reliance Global Group (NASDAQ:RELI) has announced a major strategic expansion into cryptocurrency and blockchain technology, with plans to invest up to $120 million in digital assets including Bitcoin, Ethereum, and Solana. The investment will be executed in two phases of up to $60 million each.

The company is establishing a new Crypto Advisory Board (CAB) to manage and oversee its digital-asset treasury strategy. Building on its InsurTech experience with RELI Exchange and 5MinuteInsure.com, Reliance plans to explore the tokenization of insurance-linked assets, aiming to create a new investment class with enhanced transparency, liquidity, and efficiency.

This initiative leverages Reliance's expertise in insurance, fintech, and artificial intelligence, particularly through its RELI Exchange platform, a B2B InsurTech solution that combines AI and data mining capabilities.

Positive

• Plans to invest up to $120 million in leading cryptocurrencies
• Creation of new Crypto Advisory Board for strategic oversight
• Potential creation of new investment class through insurance-linked asset tokenization
• Leveraging existing AI and fintech expertise from RELI Exchange platform

Negative

• Significant exposure to volatile cryptocurrency markets
• Regulatory and accounting uncertainties in digital asset markets
• Substantial capital allocation to high-risk digital assets
• Potential cybersecurity and custody risks associated with digital assets

Insights

Blockchain and FinTech Specialist

RELI's $120M crypto investment and blockchain insurance asset tokenization marks a major strategic pivot with significant risks and opportunities.

Reliance Global Group's announcement represents a substantial strategic pivot for an insurance technology company. The planned $120 million cryptocurrency investment (in two $60 million phases) is particularly noteworthy given the company's current focus on insurance technology. This represents a significant capital allocation decision that fundamentally alters RELI's risk profile and business direction.

The company is attempting to create a bridge between its existing InsurTech business and the cryptocurrency/blockchain ecosystem through two primary initiatives: 1) building a digital asset treasury of mainstream cryptocurrencies like Bitcoin, Ethereum, and Solana, and 2) exploring the tokenization of insurance-linked assets.

The insurance-linked securities (ILS) market has historically been relatively illiquid and primarily accessible to institutional investors. RELI's proposal to tokenize these assets could potentially introduce greater efficiency, fractionalization, and liquidity. However, this represents uncharted territory with significant regulatory, technical, and market adoption challenges.

The formation of a Crypto Advisory Board indicates recognition that specialized expertise is needed, but raises questions about how this integration will function alongside existing operations. The announcement lacks specific details on implementation timelines, regulatory considerations, or how exactly RELI's AI and data capabilities will translate to blockchain applications.

This move aligns with broader trends of traditional financial and insurance companies exploring blockchain applications, but represents a particularly aggressive approach through direct cryptocurrency treasury holdings. Investors should recognize this introduces substantial new volatility and regulatory uncertainty to RELI's business model, balanced against potential first-mover advantages in an emerging technological intersection.

Financial Risk Analyst

This announcement introduces substantial new risk factors to RELI's business model. The planned $120 million cryptocurrency allocation represents a major treasury management shift that fundamentally changes the company's risk profile. Cryptocurrency investments are notoriously volatile, with assets like Bitcoin historically experiencing 50-70% drawdowns during bear market cycles.

The press release lacks critical contextual information regarding how this $120 million compares to RELI's existing cash reserves and overall market capitalization. Without this context, it's impossible to determine whether this represents a reasonable diversification or an oversized, speculative position. The phased approach ($60 million initially, followed by another $60 million) suggests some risk management awareness, but the announcement includes the significant qualifier "subject to market and other conditions," indicating uncertainty about full implementation.

The tokenization of insurance-linked assets introduces additional regulatory uncertainties. Insurance is a highly regulated industry, and the intersection with cryptocurrency - which faces evolving regulatory frameworks globally - creates a complex compliance environment. The press release doesn't address how RELI plans to navigate these regulatory challenges.

While the forward-looking statements section acknowledges risks including "volatility or declines in cryptocurrency markets" and "regulatory or accounting changes," these warnings appear standard rather than reflecting a comprehensive risk assessment. The establishment of a Crypto Advisory Board is a prudent governance step, but without details on its composition, it's unclear whether it will provide adequate oversight for this significant strategic shift.

Company to Leverage FinTech and AI Expertise to Explore Tokenized Insurance-Linked Assets

Plans Purchase of Up to $120 Million in Cryptocurrencies such as Bitcoin, Ethereum and Solana Investments

LAKEWOOD, NJ, Sept. 15, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today announced its Board of Directors has approved its strategic expansion into the digital asset and blockchain sector. As part of this initiative, the Company plans to build a diversified portfolio comprising leading cryptocurrencies, such as Bitcoin, Ethereum, and Solana. In accordance with the Company’s new digital asset treasury strategy, the Company plans to purchase up to $60 million in digital assets in the first phase, followed by up to an additional $60 million, totaling an aggregate of up to $120 million, to be managed by the Company’s newly formed Crypto Advisory Board (“CAB”), and subject to market and other conditions.

This initiative builds on Reliance’s extensive experience at the intersection of insurance, fintech, and artificial intelligence, including the success of the Company’s proprietary RELI Exchange platform. RELI Exchange is a B2B InsurTech platform and agency partner network that combines the low barriers to entry of an agency network with state-of-the-art technology, built on the AI and data mining backbone of 5MinuteInsure.com.

Leveraging these proven AI-driven capabilities and the Company’s new digital-asset treasury strategy, Reliance is additionally exploring opportunities to tokenize insurance-linked assets in ways not previously accessible to institutional and other investors. The Company believes this innovation could open the door to a new investment class that has historically been unavailable, bringing greater transparency, liquidity, and efficiency to the insurance-linked marketplace.

In connection with the new strategy, the Board of Directors has approved the formation of a new Crypto Advisory Board (“CAB”). The CAB will manage, oversee and advise management and the Board of Directors on the ongoing development of the Company’s digital-asset treasury strategy and related digital asset initiatives.

Ezra Beyman, Chairman and CEO of Reliance Global Group, commented, “Reliance has always been committed to staying at the forefront of technology-driven innovation. Our planned entry into cryptocurrency and blockchain-based insurance-linked assets marks another important step in this journey. Through our efforts to build a portfolio of premier digital assets and by exploring tokenization opportunities, we believe Reliance can create a new and dynamic investment class that aims to enhance shareholder value and can position the Company at the cutting edge of InsurTech and blockchain innovation. This initiative is designed to potentially unlock long-term growth opportunities for our investors while reinforcing Reliance’s role as a pioneer in financial and insurance technologies.”

Reliance has a longstanding history of leveraging artificial intelligence, data mining, and innovative distribution models to deliver competitive, technology-enabled insurance solutions through RELI Exchange and 5MinuteInsure.com. By applying similar innovation to the blockchain ecosystem, the Company seeks to pioneer the convergence of InsurTech and decentralized finance.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by terminology such as “may,” “should,” “could,” “would,” “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “continue,” “potential,” and similar expressions. Forward-looking statements in this press release include, without limitation, statements regarding:

• Our expectation that building a diversified cryptocurrency portfolio may enhance our long-term treasury strategy and shareholder value;
• Our belief that tokenizing insurance-linked assets could create a new investment class that provides improved transparency, liquidity, and efficiency;
• Our expectation that leveraging blockchain and AI-driven capabilities will position Reliance at the forefront of InsurTech and decentralized finance innovation;
• Our belief that the formation of the Crypto Advisory Board will provide the expertise and oversight necessary to execute our digital-asset treasury strategy effectively; and
• Other statements relating to our future financial performance, business strategy, technology developments, capital allocation, and operational execution.

These forward-looking statements are based on a number of assumptions, including that: (i) the Company is able to successfully implement its digital-asset treasury strategy as approved by the Board; (ii) cryptocurrency and blockchain markets remain sufficiently stable to allow for execution of our strategy; (iii) regulatory and accounting frameworks evolve in a manner consistent with our ability to participate in digital-asset markets; and (iv) no material adverse changes occur in market, economic, or regulatory conditions.

Actual results could differ materially from those anticipated due to a variety of risks and uncertainties, including: volatility or declines in cryptocurrency markets; challenges in executing and managing digital-asset investments; regulatory or accounting changes that adversely impact digital-asset holdings or blockchain-based initiatives; technological risks related to custody, cybersecurity, or blockchain integration; competitive pressures from InsurTech, blockchain, or digital-asset market participants; and other factors described under “Risk Factors” in our Registration Statement on Form S-1, Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission.

You are encouraged to carefully review our Annual Report on Form 10-K for the year ended December 31, 2024, as amended, as well as other SEC filings, for a more complete discussion of these and other risks and uncertainties. Except as required by law, Reliance Global Group Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: RELI@crescendo-ir.com

FAQ

How much is Reliance Global Group (RELI) planning to invest in cryptocurrencies?

Reliance Global Group plans to invest up to $120 million in cryptocurrencies, executed in two phases of up to $60 million each.

What cryptocurrencies will RELI be investing in?

RELI plans to build a diversified portfolio of leading cryptocurrencies including Bitcoin, Ethereum, and Solana.

How will RELI manage its cryptocurrency investments?

The investments will be managed by the company's newly formed Crypto Advisory Board (CAB), which will oversee the digital-asset treasury strategy and related initiatives.

What is RELI's strategy for blockchain in insurance?

RELI plans to explore tokenizing insurance-linked assets to create a new investment class, aiming to bring greater transparency, liquidity, and efficiency to the insurance-linked marketplace.

How does this crypto initiative relate to RELI's existing business?

The initiative builds on RELI's experience with its RELI Exchange platform, which combines insurance, fintech, and AI capabilities, extending these technologies into blockchain applications.